Is Lead Generation Really Worth It?

To grow your business, you need to create opportunities with potential new customers and convert them. In that sense, the question is less ‘is lead generation worth it?’, and more ‘can I afford to not generate leads?’.

When people ask if the practice of generating leads is really worth it, they’re usually really asking if adding lead generation professionals to their internal teams is a wise investment, or whether they should team up with an expert external lead generation company instead.

So, What is a Lead Generation Company?

A lead generation company is an external provider that specialises in providing sales opportunities for a business. But that’s not all. There are a variety of different types of lead generation businesses out there, all of which can help businesses like yours to grow, just in a variety of different ways. Some match you against existing lists of contacts who are happy to be contacted, others use call centres to reach out to potential customers and a few utilise digital paid media channels to generate inbound enquiries. Whatever way the inbound enquiries arrive, they are picked up by expert teams within the lead generation agency. 

Should You Buy Leads From a Lead Generation Service?

When it comes to deciding whether or not to use a lead generation service, it can sometimes feel like there are too many options to choose from. Some lead generation agencies are definitely better than others, however, there are still some obvious reasons why businesses buy leads. For the most part, they take the responsibility of marketing away from the businesses themselves, meaning leads are delivered to you quickly without the need for excessive internal resources or expertise beyond simply creating a great product or service. 

Sadly, life isn’t always as simple as that, and utilising lead generation companies can also have its drawbacks. Some are expensive, and offer a poor return on investment, but the most common cause for  this would simply be the fact that the lead generation company being used in the first place was not a particularly good one. 

Typical bad practises that are seen in substandard lead generation companies include: 

• Use of leads that are not qualified. Companies will sell lead lists that are just a list of names. 

• Selling “used” leads or the same leads being sold to your competitors. 

• Use of unqualified leads means that your company may be unwittingly cold calling which has an exceptionally low conversion rate (2.5%) as the leads haven’t been nurtured or prequalified. 

Ultimately, if your lead generation company engages in any of these bad practices, you will most likely end up wasting resources that could have been better used elsewhere. This is why it is essential to choose a lead generation company that provides a good service and generates leads which are genuinely yours.  

Good Lead Generation Company Practises 

So, what are some signs that a lead generation agency is a good fit for your business?

1. Mastered one or more of the primary platforms for creating qualified leads in your industry 

Commonly, many companies in the B2C space are leveraging Facebook and Instagram to sell their products to generate new leads. On the flip side, B2B companies might use LinkedIn and YouTube to reach out to their target clients. 

2. Mastered the art of customization. 

Many companies come off robotic and impersonal when in reality, marketing is aimed at people, and therefore they want personalised messaging, tailored to their needs. Customisation and personalisation of your lead generation campaign, such as through marketing campaigns that are targeted to a specific segment or individual have a 14% improved click-through rate and 10% higher conversions. 

3. High-quality, exclusive leads 

A high-quality lead is one that has been generated exclusively for your company, unlike those which have been generated at random and shared with potential competitors like we mentioned above. An example of a high-quality lead is one that has willingly signed up for more information about your company at a web event. A truly great lead generation company will have contacted the lead, making sure they fit the needs and financial commitments and turning them into a sales qualified lead. 46% of marketers with well-planned lead management strategies have sales teams who follow up on more than 75% of leads.

4. Technology is up-to-date

A good lead generation company will have great technology that makes use of robust digital tools that agencies utilise to find, track, and manage the different aspects of their service. It is essential that whatever they are using can be easily integrated into your selected CRM. 

As you can see, the question ‘is lead generation worth it’ is not a simple one. Employing the services of a lead generation company may not be the right choice for your organisation, however, if you choose the right company that utilises good lead generation practises, it can be a significant step towards helping your organisation grow. 

If you’re looking to accelerate your business’ growth with sales-ready leads, book a demo with Dolead today. 

Frequently Asked Questions

Is Lead Generation Really Worth It?

What is lead generation?

Lead generation is the process of attracting and converting potential customers into leads, who have shown interest in your products or services.

Why is lead generation important for digital marketers?

Lead generation is crucial for digital marketers as it helps them identify and connect with potential customers, ultimately driving sales and business growth.

How does lead generation work?

Lead generation involves various strategies such as content marketing, social media marketing, email marketing, and search engine optimization (SEO) to capture the attention of potential customers and collect their contact information.

What are the benefits of lead generation?

Lead generation offers several benefits, including increased brand awareness, higher conversion rates, improved customer targeting, and a steady stream of qualified leads for your business.

Is lead generation worth the investment?

Yes, lead generation is definitely worth the investment as it helps businesses generate valuable leads, increase sales, and achieve a higher return on investment (ROI) in the long run.

How can I optimize my lead generation efforts?

To optimize your lead generation efforts, focus on creating high-quality content, optimizing your website for search engines, leveraging social media platforms, and implementing effective lead nurturing strategies.

What are some common lead generation mistakes to avoid?

Some common lead generation mistakes to avoid include neglecting lead qualification, not personalizing your approach, relying solely on one channel, and failing to track and analyze your lead generation efforts.

Where can I learn more about lead generation?

There are numerous resources available online to learn more about lead generation, including industry blogs, webinars, online courses, and digital marketing forums.